“The cash squeeze… will have significant implications for GDP, reducing 2016-17 growth by ¼ to ½ (0.25 to 0.5) percentage points compared to the baseline of 7%,”the survey said. It put the growth rate in the first eight months of the current financial year at 7.1%. It also said structural reforms and a proposed Goods and Service Tax could boost growth rate to 8-10%. The Economic Survey pegged growth in the agriculture sector at 4.15% in 2016-17, significantly higher than the 1.2% in 2015-16. This is primarily because of better monsoon rains during the current financial year.

Source: Hindustan Times January 31, 2017 07:37 UTC